Malaysia Airlines to cut 30% workforce; to undergo major restructuring

Kuala Lumpur, Aug 29: After two major air disasters this year, Malaysia Airlines has decided to cut 30 percent of its workforce as part of a sweeping restructuring that will cost 6 billion ringgit ($1.90 billion), said a Reuters report.

The carrier will cut its work force by 6,000 to 14,000. The move is after the carrier started making huge losses worsened by two aircraft disasters this year.

Also, Malaysia Airlines will be de-listed from the Kuala Lumpur exchange by the end of 2014.

"Recent tragic events and ongoing difficulties at MAS have created a perfect storm that is allowing this restructuring to take place," said majority investor Khazanah Nasional [KHAZA.UL] said.

"We believe that the 6 billion is not a bailout, we believe it will be recovered with re-listing," he said.

Khazanah said in the statement that it plans to re-list the carrier in three to five years from now.